A new Commercial Tenancy Relief Scheme will apply to landlords and eligible tenants from today, 28 July 2021, as announced by the Victorian Government.
While details are limited, the reintroduced Scheme may:
- apply to tenants with annual turnover of less than $50 million who experience a decline in turnover of at least 30 per cent;
- require landlords to provide rent relief proportional to the decline in turnover;
- require at least half of any sum of rent relief is provided as a waiver;
- prevent landlords from evicting eligible tenants without a determination from the Victorian Small Business Commission (VSBC); and
- provide mediation through the VBSC.
This approach is broadly consistent with the rent relief Regulations that previously applied.
The Victorian Government intends to run the Scheme until January 2022, according to the Property Council of Australia.
Legislation will shortly be introduced in Parliament and will be retrospective to 28 July 2021.
An $80 million hardship fund will be available for landlords who provide rent relief.
We will provide further information on the Scheme once details are known.
More information
For more information, please contact Morgan Scholz, Head of Property, on (03) 8600 8890 or mscholz@kcllaw.com.au, Mark Yaskewych, Principal Lawyer, on (03) 8600 8830 or myaskewych@kcllaw.com.au, or Geoff Kliger, Senior Special Counsel, on (03) 8600 8878 or gkliger@kcllaw.com.au.
Author
This Property update was authored by Morgan Scholz, Head of Property.
Note: This update is a guide only and is not intended to constitute legal advice.